Dewa Project Pier20
Non Performing Asset

Hi all,

I would like to inform few things i came to understand about Dewa Projects - Pier20, Kochi when i inquired about the project for buying an unit in Pier20, Marine Drive, Kochi.

Dewa Projects promoted by Mr. Venugopal Nair (based in trivandrum) launched this apartment project recently renamed as "Dewa Pier20"(they launched the same project 5 years back as Dewa Royal and withdrew the same).

The company is now selling apartment units at Marine Drive, Cochin at throw away price so as to attract investors. For developing Dewa Pier20 they have not yet grabbed necessary approvals for constructing building in Marine Drive, Kochi including clearance from Ministry of Environment.

Even though the company assures the completion by 2015 and also convey that necessary fund is allotted for the development, i came to understand that the company owes about 150 crore's to consortium of banks. In additional to that company took finance of about 50 crores from IL&FS (private financial service firm) for starting constructions. The project land is also not belonging to Dewa Projects and registered in some other companies name so as to safe guard them self.

The 150 crore funding given by around 13 banks lead by union bank had declared the property as "Non Performing Asset" (similar to kingfisher airlines) and initiating legal actions to cease the property as the funds are diverted. The group of bank includes Federal Bank, SIDBI, Corporation Bank, Bank of Allahabad, Punjab Nationalised Bank etc

I personally feel they will not be in a position to complete the project on time as they are facing serious financial crunch as they had sold only 15 units ever since they launched, the chances of loosing money for the investors is on a higher side. I am also cautious to invest in properties of such builders as we had seen many scams in Kerala recently.

I will be thinking about the project only after completion (if completed) as i feel that is the best way to invest in this property, so as to avoid unnecessary risk for the investment (as its hard earned money) and also because lot of other properties (completed and nearing completion) in Marine Drive are available by well known developers.

Cheers!